Abstract:

The present paper aims to present fiscal policy within Romania and the European Union, in the context in which the fiscal policy promoted by the EU Member States represents an important aspect of the quality of public finances. Achieving and supporting a healthy public finances is essential to ensuring increased production and job growth in Europe. Reducing public debt and budget deficits contributes to maintaining a low interest rate, facilitating keeping inflation under control and creating a stable framework for encouraging investment and growth. In the paper, I will focus on identifying and analyzing the tools that Romania's fiscal policy can apply for achieving the ultimate goal according to the specifications of its own economy. Fiscal, EU countries have maintained levels of public spending and revenue of around 40% of gross domestic product. They partially funded the provision of classical public goods, such as national defense, but the most important part of the increase in public spending was due to the extension of the redistribution function of the state through social protection. At the level of the European Union (EU), tax policy is subordinated to the Treaty establishing the European Community which provides for the elimination of customs duties between Member States and any other measures having similar effect and to ensure free competition within the common market, particularly with regard to indirect taxes (value added tax and excise duties).